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Freight Railroads Are Braking for Regulatory Creep

The paperwork for safety compliance alone costs about $1.5 billion a year. And more rules are coming.

By

Edward R. Hamberger

Updated June 15, 2016 9:49 a.m. ET

Economic forecasters are projecting the slowest expansion in four years, slashing expectations for the year to only 1.8% in overall GDP growth, according to a new survey from the National Association for Business Economics. Thus continues the weakest recovery from a recession since World War II.

One explanation for this sluggish performance may be the increasing regulatory burden on American industry, including freight railroads. A web of regulations drove the freight-railroad industry to the brink of financial ruin in the...